Zynga Inc Joins Apps On (RED) With Farmville 2, CSR Racing

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Zynga Inc (NASDAQ:ZNGA) joins Apple Inc. (NASDAQ:AAPL)’s “Apps for Red” program with its popular titles Farmville 2: Country Escape and CSR Racing, says an official blog post. The social game maker is one of 25 contributors to the campaign, which will run through Dec. 7.


Zynga joins Apple’s (RED) program

Users can donate all proceeds to the (RED) campaign, a global fund formed to fight AIDS, when they select any of these apps on the iPhone, iPad or iPod Touch. The app collection is an easy way to collect money for good causes, and the full amount donated will go to the Global Fund to Fight AIDS.

Apart from Zynga, Apple entered into partnerships with some other prominent companies, such as Electronic Arts Inc. (NASDAQ:EA), which will feature titles such as EA’s FIFA15, The Sims, Angry Birds and others. It is expected that Apple could also invite King Digital Entertainment PLC (NYSE:KING) to bring in more users.

Analysts note that the timing of the campaign is apt, as it will include Black Friday and Cyber Monday. The initiative started by the iPhone maker will enhance its image as a socially responsible company at a time when other prominent companies such as Facebook Inc (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT) have already taken up the Ebola cause.

Challenges ahead for Zynga

The social game maker is facing declining interest in its three popular titles Farmville 2, Zynga Poker and Hit it Rich, which contributed 61% of its top line during the third quarter. The remaining games and advertising contributed the remaining revenue.

At the end of the third quarter, Zynga reported a user base of 112 million monthly active users and 26 million daily active users, which is a drop from 133 million and 30 million users in the previous year quarter, respectively. Revenue dropped 13% year over year to $177 million, and net losses came in at $57 million, which increases the possibility that the company will lose over $200 million by the end of fiscal 2014, and in the past six years, the company will have lost over $800 million, notes a report from the Motley Fool.

For 2015, popular titles from Zynga would be Tiger Woods Golf, Real Housewives, and Bridesmaids-themed versions of Hit It Rich. The company will be hoping that the new titles will help it combat core problems such as its declining user base, and dropping ranks on popularity charts.

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